Dax: Keep watching that gap!
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: Germany's Dax index has bounced off strong support so the gap remains in situ. Saxo technical analyst Kim Cramer-Larsson gives us a quick briefing of the levels to watch and what they mean.
RSI is still bullish since it has not been below the 40 threshold. However, a close of the gap will most likely push RSI below. It is crucial for the Dax not to close the gap – unless you are short, that is.
A close of the gap is likely to fuel a further sell-off towards 11,250.
A close above 12,310 is needed to reverse the downwards pressure.
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